If we look at the AutoZone (NYSE:AZO) chart, we can see it was trading in a channel until Dec. 3, where it bounced from the $1810 support level after its weak closing on the previous day.
Since then, it managed to climb and breakout from its overhead resistance of $1860, reaching as high as $1900 but retracting and basing above the resistance of $1860, no turned support.
AutoZone has scheduled a third-quarter earnings announcement today. If earning expectations are surpassed, we could expect the price to move upwards, towards the $1930 price range.
Today we could expect a move upwards near the resistance at $1900, and possibly further towards $1910.
If, however, it doesn’t manage to hold above the current price range, then a case can be made for moving below the $1860 support level.
